Richard Koo (Nomura Securities) - Balance sheet recession

csis.org/media/csis/events/0 … tation.pdf
(Courtesy of Naked Capitalism):

Lots of scary charts…

Exhibit 28 is interesting for those who doubt the effectiveness of the New Deal in reducing unemployment. What is espectially interesting is that the budget deficit as a % of GNP didn’t exceed 6% and was more ususally 4% during the New Deal.